Vancouver exercise equipment company Nautilus said Monday it may sell the struggling business and hired a consultant to explore “strategic alternatives.”
Nautilus manufactures the well-known brand of treadmills, exercise bikes, and other fitness equipment that bear the company’s name. It also owns the Bowflex line of home gyms and the Schwinn brand of bicycles.
Sales skyrocketed early in the pandemic as people adapted to doing more at home. But like Peloton, DocuSign and other pandemic-era investor favorites, Nautilus has stumbled as people returned to normal life.
Revenue fell 11% last year and the Vancouver company reported a loss of $28 million in the fiscal year that ended in March, compared to a profit of $112 million in the previous 12 months.
Nautilus shares have lost nearly 95% of their value since the stock hit a high of $30 in February 2021. Shares closed Monday at $1.67 after the New York Stock Exchange briefly halted trading before the Nautilus announcement.
Nautilus said it has hired investment bank Evercore to help it assess its next steps. The company insisted its future is bright, regardless of the outcome of its strategic review, due to recent investments that could broaden Nautilus’ customer base.
“Given the state of the home fitness ecosystem, we believe the time is right to comprehensively assess any opportunity that could accelerate our transformation and enhance value for our shareholders, while also benefiting our customers, employees and customers. suppliers,” said CEO Jim Barr. he said in a written statement.
Nautilus said it does not have a timeline for completing its strategic review and will not comment on developments until the process is complete.
–Mike Rogoway | [email protected] | 503-294-7699 | Twitter: @rogoway |
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